Solved

Monopolists Are Said to Be Allocatively Inefficient Because

Question 17

Multiple Choice

Monopolists are said to be allocatively inefficient because:


A) they produce where MR > MC.
B) at the profit-maximizing output,price is greater than AVC.
C) they produce only the type of product they desire and do not consider the consumer.
D) at the profit-maximizing output,the marginal benefit to society from increasing output is greater than the marginal cost to society.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q12: In general,the amount of X-inefficiency in an

Q13: Suppose that a monopolist calculates that at

Q14: The supply curve for the pure monopolist

Q16: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4893/.jpg" alt=" Refer to the

Q18: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4893/.jpg" alt=" Refer to the

Q20: The supply curve for a pure monopolist:<br>A)

Q21: In a monopoly,price is less than minimum

Q22: The general view of economists is that

Q23: Price discrimination is<br>A) always legal.<br>B) always illegal.<br>C)

Q214: One defining characteristic of pure monopoly is